Weekend Cryptocurrency Update: Trade tensions ease, Federal Reserve decision draws attention, how to navigate the volatility range of Bitcoin and Ethereum?

CN
6 hours ago

Tracking real-time hotspots in the cryptocurrency market and seizing the best trading opportunities. Today is Sunday, May 4, 2025. I am Wang Yibo! Good morning, crypto friends! ☀️ Die-hard fans check in 👍 Like to make big money 🍗🍗🌹🌹

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In the past week, market investors' concerns about trade tensions have further eased. Additionally, despite a mixed bag of economic data, the unexpectedly strong non-farm payroll report has also alleviated worries about economic growth slowing down. In the coming week, the market's attention will shift to central bank interest rate decisions, including those from the Federal Reserve and the Bank of England. In terms of economic data, service sector PMIs from multiple countries around the world will be released. The U.S. earnings season will also continue. The Federal Reserve will announce its latest interest rate decision next week, with expectations that rates will remain unchanged, despite President Trump's recent pressure on the Fed. Market focus will be on the Fed's policy statement and Powell's press conference for any signals regarding a potential rate cut later this year to boost the economy.

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Bitcoin rebounded after touching the 95757 level again in the evening session, a significant point. Previously, Bitcoin's peak also fell within this range, and multiple dips have failed to break below it effectively, with the resistance level gradually transforming into key support. The current market is in a state of fluctuation, with two possible future trends: a continued slow decline or a rebound from the bottom. The gains or losses at this point will directly determine the subsequent market direction. Observing the daily chart, Bitcoin experienced a pullback after reaching a high yesterday, forming a long upper shadow; today it rebounded from the bottom, showing an alternating pattern of bullish and bearish candles. The 4-hour chart indicates that the Bollinger Bands are still opening upwards, but this pullback has been significant, with prices dropping from the upper band to the middle band. However, the middle band shows strong support, and there are currently no signs of a breakdown. This pullback can be seen as a normal correction within the upward trend. In future operations, investors should pay close attention to the 95800 support level and continue to be bullish on Bitcoin recovering lost ground.

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Ethereum exhibited noticeable price volatility overnight, dipping to a low of 1806 before rebounding, reaching a high of 1847, but then faced selling pressure and fell back. Analyzing the technical structure, the middle band on the 4-hour chart shows strong support, with multiple price dips finding support and rebounding at this level, indicating its importance to the bulls. On the hourly chart, the channel is flattening, suggesting a balance of bullish and bearish forces in the short term, with the market in a relatively stalemate state. Currently, prices are fluctuating within a relatively narrow range, with no clear one-sided trend signals. Considering that weekend market liquidity is usually affected, leading to reduced trading activity, price fluctuations may be further limited. Therefore, it is recommended to operate around the range points, attempting a buy low, sell high strategy within the 1800 - 1860 overnight fluctuation range, while strictly setting stop-loss orders to guard against potential unexpected market movements.

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If you are feeling lost—don’t understand the technology, can’t read the charts, don’t know when to enter the market, don’t know how to set stop-losses, don’t understand take-profit, randomly increase positions, get stuck while trying to catch the bottom, can’t hold onto profits, miss market opportunities… these are common issues for retail investors. But don’t worry, I can help you establish the correct trading mindset. A single profitable trade is worth a thousand words; finding the right direction is better than repeatedly facing losses. Instead of frequent trading, it’s better to strike accurately, making each trade more valuable. If you need real-time guidance, you can scan the QR code at the bottom of the article to follow my public account. The market changes rapidly, and due to the timeliness of reviews, subsequent trends will be based on real-time layouts. I look forward to progressing steadily with you in the market.

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